A Promising Joint Venture in the Gulf
Accelerating High Return Portfolio and Financial Flexibility
At W&T Offshore, we have secured a $361.4 MM commitment for the development of 14 pre-identified projects in the Gulf of Mexico.
The program, which can be potentially upsized, covers the total estimated cost of the 14 wells of $336 MM, plus contingency. We’ve drilled and completed nine wells through December 31, 2019. We initially receive 30% of the net revenues for contributing 20% of the capital expenditures, plus associated leases and access to available infrastructure.
Our share of the well net revenue increases once private investors achieve certain return thresholds. This allows us to develop our high return drilling inventory at a faster pace with reduced capital outlay and the flexibility to make acquisitions and pay down debt. The joint venture structure also expands our access to well-capitalized investors.